Bankruptcy Questions and Answers - After Filing Bankruptcy

What happens after I file a bankruptcy petition? 

The bankruptcy court will mail to each of your creditors a "Notice of Commencement of Case", informing them that you have filed the petition and advising them of the date of the First Meeting of Creditors.

About 30 to 40 days after filing the bankruptcy petition, you will be required to attend a hearing presided over by a bankruptcy trustee. This hearing is called the First Meeting of Creditors. The trustee is not a judge, but an individual appointed by the United States Trustee to oversee bankruptcy cases. At the First Meeting of Creditors the trustee will ask you questions under oath regarding the content of your bankruptcy papers, your assets, debts and other aspects of your financial situation.

In an ordinary chapter 7 proceeding the Bankruptcy Court will automatically grant an Order of Discharge 60 to 75 days after the First Meeting of Creditors. In a chapter 13 proceeding, the Court will enter an order confirming your chapter 13 plan once you meet all the requirements. In a chapter 13 proceeding you receive your discharge upon completion of the chapter 13 plan.

Who deals with my creditors during the bankruptcy?

We will deal with all creditors once we have been retained.

What is the "automatic stay?"

At the moment a bankruptcy petition is filed, your creditors are automatically restrained from taking any action to collect the debts owed them. There are some exceptions, for example, a bankruptcy petition does not stay the commencement or continuation of a criminal action, an action to collect spousal support, or an action to enforce a government's police or regulatory power.

If my creditors ignored the automatic stay, what could be done?

Make sure the creditor is aware that you filed bankruptcy and ask it to stop collection efforts.

If the creditor does not respond, you may seek a court order enjoining the creditor from further action.

If you are an individual and are injured by your creditor's willful failure to comply with the automatic stay, the law allows you to recover actual damages, including costs and attorneys' fees, and, in some circumstances, punitive damages.

Will the fact that I filed bankruptcy appear on credit reports?

The bankruptcy will be listed in credit reports for a period of up to 10 years.

After bankruptcy, can I obtain new credit?

Yes. The decision of whether to extend you credit belongs to each particular lender. However, the fact that you filed bankruptcy, if properly explained, can be less damaging than a history of unpaid accounts.

How can I re-establish credit after bankruptcy?

You may be able to obtain a secured credit card, where the credit limit is based upon the amount of security given, or obtain credit using a co-signer not long after your case is discharged.